Play records 80.6% load factor and carried 86,661 passengers during March

In March 2023, PLAY carried a total of 86,661 passengers with a load factor of 80.6%. The load factor was 67% and the passengers flown were 23,700. Passengers in PLAY’s network in March have therefore tripled between years. This is a significant growth from March of last year when the load factor was 67% and passengers flown were 23,700. Passengers in PLAY’s network in March have therefore tripled between years, signifying a momentous growth trajectory. 

Of the passengers in March 2023, 26% were travelling from Iceland, 39% were travelling to Iceland, and 35% were connecting passengers (VIA). March saw a significant year-on-year increase in the number of passengers travelling to Iceland. PLAY is committed to growing its market share in the important market segment of tourists coming to Iceland and this increase demonstrates a strengthening market position in the international markets.  

March was another record month in terms of ticket sales. Furthermore, the company sees a continuing growth trend in average yields and ancillary revenue. This growth in revenue further suggests that the airline’s increased capacity this year is well aligned with market demand. 

Arnar Már back to the Executive Board of PLAY

Arnar Már has returned to the executive board of the Icelandic budget carrier PLAY.  

Arnar Már Magnússon, Captain and one of the founders of PLAY  will soon be reinstated as Managing Director of the Company's Operations Division. Arnar was managing director of the division until over a year ago when he decided to return to the captain's seat full-time. Arnar Már is one of the founders of PLAY and was CEO at the start-up stage of the airline in 2019-2021 before the company launched.

Arnar will take over the managing director position from Guðni Ingólfsson, who will retire in the near future. Gudni has been managing director of the division since March 2022.

"I'm delighted to have Arnar Már back on the PLAY executive board at this point, rested and ready to join us. Arnar has been a key player in PLAY's history, being one of the founders of the company. Arnar was a powerful member of the club's management before deciding that the skies were called and it is good to have his powers back on the PLAY executive board during this important year in the club's history. I know the operations department will be in good hands with Arnar. At the same time, I would like to thank Guðni Ingólfsson very much for his hard work during the last year during the important development period of the company. I also wish him good luck in what he does," says Birgir Jónsson, CEO of PLAY.

PLAY announces new Glagow Iceland service.....

Four times a week....Glasgow - Iceland

PLAY Airlines has announced plans to launch a new service between Glasgow and Iceland beginning Friday 26 May.

With flights scheduled four times a week on Mondays, Wednesdays, Fridays, and Sundays, Glasgow will now be fully connected to PLAY's North American routes.  

PLAY currently operates flights to Boston, Washington DC, Baltimore, and New York in the United States, as well as Toronto in Canada.

Passengers can enjoy a comfortable journey on the Airbus A320neo with 180 seats, and this summer, PLAY's fleet will consist of 10 Airbus A320/321neo, with an average age of approximately 2.5 years. 

PLAY's motto is "Pay less, PLAY more," which means that customers can enjoy a cost-effective flight and have more to spend on their destination's fun activities. Furthermore, with a nearly 90% on-time performance rate in 2022, PLAY prioritizes passenger safety, providing a safe, reliable, and comfortable journey that doesn't break the bank. 

Icelandic airline PLAY turned over USD 140 million last year.

Icelandic budget airline PLAY has released its latest results for last year, which show the carrier turned over USD 140 million, delivered a negative EBIT and experienced strong revenue growth.

PLAY carried 241 thousand passengers in Q4. For the full year of 2022 PLAY carried 789 thousand passengers.

The load factor in Q4 was 80.3%. The load factor was improving throughout 2022 and resulted in 79.7% for the full year.

Q4 was operationally successful with an on-time performance of 91%.

Revenues in Q4 were USD 37.9 million compared to USD 9.7 million in Q4 2021. Full year revenues in 2022 were USD 140 million compared to USD 16 million in 2021.

Positive trends in ancillary revenues in Q4.

Negative effect of weather disruptions in Iceland in December resulted in USD 2.2 million in lost revenues and additional expenses.

The financial position of the company is healthy. Cash on December 31 amounted to USD 36.2 million including restricted cash. The equity ratio was 11.6% and the company has no external interest-bearing debt.

Earnings before interest and taxes (EBIT) were negative in 2022 by USD 44 million compared to negative USD 25 million in 2021.

Net income was negative by USD 45.5 million in 2022 compared to negative USD 22.5 million in 2021.

Shareholders’ equity was increased by USD 16 million in Q4 2022.

PLAY’s cost target of being under 4 US cents a unit (CASK ex-fuel), was reached in Q4 and was in line with the target for 2022.

36 destinations are currently on sale.

Strong sales momentum at the beginning of 2023 resulting in forward unit revenue (RASK) being higher than in 2022.

Birgir Jónsson, CEO of PLAY said:   "We are pleased to report strong growth in our revenue base and load factor in the fourth quarter of 2022. For the past months we have been achieving a higher load factor than most of the airlines we compare ourselves with at the same time as our punctuality is world-class. The quarter was operationally successful, with almost 250,000 passengers flown and a load factor of 80.3%. These metrics make all of us at PLAY really proud and confirm that we are being well-received in the market. PLAY has a healthy financial position and a healthy cash balance. In 2022 we were still running the company at a loss but that is to be expected given the fact that we are a start-up company in a steep growth period as adding aircraft, destinations, and staff as well as introducing a new brand into the market is time consuming and capital intensive. We do however see clear and positive signs that show we are on the right track and that we will soon see a return on our investments as we become more established in the market. We have been very successful in controlling our cost level and it is great to see that the revenue is now beginning to grow, creating the perfect cocktail for success. We saw a very positive trend in ancillary revenues in the quarter with airport sales per passenger increasing, the successful ramping up of our cargo operations and have now launched new digital solutions designed to increase our ancillary revenue as well as our service level. The year begins with very strong booking trends and increased unit revenue making us confident that our revenue base is maturing and developing positively. Our capacity in summer 2023 is growing by close to 77% compared to summer 2022 and we are adding four new aircraft to our fleet as well as welcoming around 200 new team members. It is a real pleasure to see the PLAY team continuously growing stronger and working hard on reaching our goals for the year. We enter the new year filled with energy and ambition and a laser focus on reaching our goals. I believe our great team of Players is only just beginning to show the world what they are made of and I am both humble and glad to be a part of this great team of people.”

PLAY carried 61,798 passengers in January

The Icelandic budget carrier, PLAY carried 61,798 passengers in January 2023 which is more than five times the number of passengers PLAY carried in January 2022. The load factor in January was 76% compared to an 82.8% load factor in December. The January load factor and passenger number is very satisfactory for a traditionally difficult month in travel and demonstrates the continued growth and effectiveness of PLAY’s distribution and commercial activity. 

PLAY’s popular route to and from Tenerife had an impressive load factor of over 90% in January, while the Paris route performed nearly as well with an almost 90% load factor. 

30% of PLAY passengers in January were travelling from Iceland, 37% were travelling to Iceland and 32% were connecting passengers (VIA). 

Forward bookings in January were strong, beginning the year on a very positive note as January was a record sales month for PLAY.

In January, 84.3% of PLAY’s flights arrived on schedule, ensuring a smooth and punctual travel experience for our passengers despite very challenging winter operations in Iceland.

PLAY takes off to Canada and expands significantly in Denmark

Icelandic low-cost carrier PLAY selects MOST's end-to-end payment solution

PLAY, the Icelandic low-cost carrier, has selected MOST, makers of technology for a world on the move, to provide it with onboard retailing and payment solutions, including software, hardware and payment gateway services. Working with MOST will allow crewmembers to accept secure payments quickly and easily from passengers onboard the aircraft.  

 

Starting from December 6, PLAY will upgrade from its existing card readers on board and implement three of MOST's modular payment solutions: most.Retail, most.Pay and most.Onthego. The deployment covers PLAY's entire fleet of A320 family aircraft. 

  

As the launch customer for three of MOST's products, PLAY is paving the way for a future of frictionless inflight payment technology. MOSTs cutting-edge digital retail platform, payment sled hardware and payment gateway technology will mean that PLAY passengers can look forward to a more convenient and streamlined travel experience, and crew can efficiently complete transactions in the cabin.

With PLAY already serving 24 destinations in Europe and the United States from its hub in Keflavik, Iceland, MOST's end-to-end payment solutions enable passengers on both sides of the Atlantic to use their preferred payment option. PLAY's passengers will be able to tap and pay with all major cards or digital wallets worldwide in currencies including EURO, US Dollars and ISK when ordering inflight food and beverages. A sophisticated special offer engine and forecasting tools will also help PLAY to maximize inflight sales opportunities as it grows. 

 

MOST will also supply the airline with customized and company-branded mobile payment accessories. PLAY's crew will be using smartphones paired with payment modules from MOST to complete transactions, track onboard inventory and perform other tasks, such as delivering eco-friendly e-receipts to passengers. The crew devices will sit in a custom casing, designed ergonomically with crew comfort in mind and manufactured in PLAY's signature brand colours. The cases provide increased physical protection for crew devices and feature a detachable payment peripheral that can be removed to get closer to the cardholder.

  

"We are delighted to be working with an energetic airline brand such as PLAY as it continues to expand its fast-growing route network across North America and Europe," said MOST CEO Jan Blanchard. "This airline is hungry for success, and they have plenty of room to grow. Our solutions will help PLAY deliver on its low-cost model and bolster ancillary revenues by simplifying inflight sales and removing barriers to payment on board."

  

PLAY CIO Georg Haraldsson added: "This is an exciting time for our airline as we continue to invest in innovative solutions that will help us boost ancillary revenues and enhance the travel experience for our passengers. Technology and service are key to our strategy as a low-cost carrier, and MOST has delivered an excellent combination of specialist hardware and software. We trust them to help us achieve our goals."

Ólafur Þór Jóhannesson has been appointed Managing Director of Finance at PLAY.

Ólafur Þór Jóhannesson has been appointed Managing Director of Finance at Icelandic budget airline PLAY. He takes over the job from Þóra Eggertsdóttir and starts work at the beginning of November.

Ólafur Þór served as CEO, Deputy CEO and Managing Director of Finance at Skeljungur hf. in 2019-2022. Prior to that, he held various management positions in the business sector, has been an independent consultant, held board positions in several companies, and then he was an accountant and partner at PricewaterhouseCoopers. Ólafur Þór also taught at the Faculty of Business Administration at Reykjavik University. He is a business student from the University of Iceland and is a certified public accountant.

Olafur Thor: "I am grateful for the opportunity to be a participant in the ongoing development of PLAY which, in my opinion, is in a very interesting place. I look forward to the many projects ahead and hope that my experience and knowledge from different industries will be useful to the company."

Birgir Jónsson, CEO of PLAY: "We are delighted to introduce Ólafur Þór to the game, as it is a great reward for him for the company. He has tremendous experience from diverse sources and is a good addition to PLAY's strong management team. Now that he takes over our strong financial team, we can take certain steps forward and continue to raise the flight. "I would like to warmly welcome you on board."

Solid September for PLAY...Icelandic airline starts new Liverpool service

Photo by Benjamin Suter on Unsplash

In September, one of Iceland's newest airlines, PLAY carried 92,181 passengers, a big decrease from August when the airline flew 109,956 people.  Load factor also dropped from nearly 87% in August to 81.5%. On-time performance (OTP) in September was 86%.

According to the airline, in Iceland, September is seen as a traditionally challenging month for airlines, due to a drop in demand for holidays, a new school year and a return to work for many. 

However, PLAY’s hub-and-spoke network has had a very positive effect on the business, including aircraft utilization and a decline in unit cost. 

New destinations & large hiring

This week PLAY is celebrating its inaugural flight to Liverpool John Lennon Airport.  PLAY will operate flights to Liverpool two times a week, on Mondays and Fridays. Passengers can now fly comfortably between Liverpool and PLAY’s four destinations in the U.S. as well as Iceland.

Welcome to Liverpool - Play's first service. Photo Play

Paul Winfield, Director of Aviation Development for Liverpool John Lennon Airport, said: "We’re delighted to welcome PLAY to Liverpool and to add Reykjavik as the latest destination to the Airport’s expanding route network. 

As well offering the region’s travellers an excellent low-cost airline product to Iceland and on to New York, Washington and Boston, this will also be another important link for the region’s visitor economy too, making it easy for Icelanders and Americans wanting to visit the Liverpool City Region, the North West and North Wales to fly to Liverpool."

Porto

On October 6, PLAY launched ticket sales to Porto in Portugal. Scheduled flights will begin in April 2023 and will be operated twice a week throughout October 2023. Porto is PLAY’s second destination in Portugal as PLAY offered direct flights twice a week between Iceland and Lisbon in 2022 and will continue to do so in 2023. This will be the first time that an airline offers scheduled direct flights between Iceland and Porto.

On September 1, PLAY announced a recruitment drive to fill 150 cabin crew positions and 55 flight crew positions for 2023 to support the company’s growth in the coming year. This received great interest and more than 3,000 applied for the positions. The selection process has already begun, and the first training courses are planned for December and will continue until June.

Photo Play

Birgir Jonsson, PLAY’S CEO:  "We are quite pleased with the respectable load factor we achieved in September as the month traditionally has low demand at the end of summer. Even though the winter months are always challenging for airlines and the economic situation in the world continues to be uncertain our sales over the past weeks have been strong after a somewhat slow start to the fall. We are therefore continuing with our plans of adding new destinations, aircraft and people for next year. The strength of our hub-and-spoke business model gives us the flexibility to move capacity between markets as demand fluctuates and it is this flexibility that gives us confidence for the coming months and the future performance of PLAY. The daily operation continues to be solid, our on-time performance is very impressive and the customer feedback regarding our services is overwhelmingly positive and complimentary.  These are some of the many  reasons why I‘m so proud of belonging to the great team of people at PLAY and why I‘m so very optimistic for the future."

PLAY carried 109 thousand passengers in August with an 86.9% load factor

PLAY carried 108,622 passengers in August, a similar number to the previous month when PLAY carried 109,956 passengers. 

Photo Play

In August, the load factor was 86.9% compared to an 87.9% load factor in July and 79.2% in June. This development is primarily due to the addition of the transatlantic hub-and-spoke model connecting cities in Europe and the United States.

In the summer of 2022 PLAY has successfully launched many new destinations and seen very positive development of the existing destinations on the European side of the network. PLAY’s hub-and-spoke network is now up and running with positive effects on the business, including improved aircraft utilization, unit cost declining below our target of USD 4 cents and higher load factor. Forward bookings for the remainder of the year are tracking ahead of last year and it is safe to say that booking status for autumn and winter remains good.

On-time performance (OTP) in August was 89.2%, a testament of the professionalism of our operations team.

New U.S. Destination and largest hiring yet 

Iceland's Play releases details of Q2 performance

PLAY carried approx. 181 thousand passengers in Q2 and the load factor was 74.8%, The passenger numbers increased between months and the load factor strengthened. This favourable trend has continued into Q3 and 110 thousand passengers flew with PLAY in July which is mainly due to PLAY‘s connecting flights across the Atlantic Ocean between major cities in Europe and the United States. The booking status for autumn and winter remains good.

“We can safely say that PLAY has now emerged from the tough obstacle course of the startup and expansion phase and smoother sailing is ahead. Over the past months, we have created a solid foundation that we will use to keep developing PLAY as a successful company. The second quarter of 2022 was the last hurdle towards running our business model which came into full effect in July, at the beginning of the third quarter. After rapid expansion with many new destinations, the deployment of our VIA operations and receiving new aircraft, our operations are now stable. 

I am so proud of the people working at PLAY who have managed to start this company during a volatile time in a complicated business environment. We are now coming out of the development phase with a strong financial position and finally, the external conditions are more favourable after strong headwinds. Oil prices are, for example, going down fast. We see brighter times ahead, our booking status is strong and we plan on showing a positive operating result later this year. People are clearly not deterred from travelling because of the coronavirus anymore. We see that in the increase of our long-term bookings and a drop in cancellation coverage. Our biggest objectives this coming winter are receiving four new aircraft, which will be added to our fleet next year, and hiring more crew members. 300 great people are already working at PLAY and that group will be even bigger next year when we will hire 200 more,” says Birgir Jonsson, PLAY‘s CEO.

Booking flow is strong and load factor growing.

PLAY has carried approx. 181 thousand passengers in Q2 and anticipates approx. 800 thousand passengers this year.

The financial position of the company is strong. Cash and cash equivalents on June 30 amounted to USD 39.5 million with restricted cash. The equity ratio was 13.4% and the company has no external interest-bearing debt.

Earnings before interest and taxes (EBIT) were negative in Q2 2022 in the amount of USD 14.4 million, as expected as the company had yet to reach economies of scale.

As of July 2022, PLAY has started operating the full hub-and-spoke network.

PLAY reached its cost target ahead of time, being under 4 US cents unit cost (CASK excl. fuel).

Unit cost continues to decrease with expanded operation, and PLAY anticipates positive operating results in the latter half of this year. 

Operating revenues are rapidly increasing and PLAY expects the turnover to be USD 150-160 million this year.

PLAY’s destinations are now 25.

PLAY expects to carry around 800 thousand passengers in 2022 and report revenue of approx. USD 150-160 million. Unit cost (CASK excl. fuel) continues to decrease with the expanded operation and PLAY expects operational profit later this year. PLAY reached its cost target ahead of time, being under 4 US cents CASK excl. fuel due to effective cost control and increased economy of scale with more aircraft.

During Q2, the main focus was on preparing for the airline’s operational ramp-up before the summer schedule and the hub-and-spoke operation, and by the time Q3 started, PLAY’s full hub-and-spoke network was in place with six aircraft in operation. PLAY successfully started operating flights to fourteen new markets in Q2.

Load factor and total passenger numbers increase in July for Iceland's PLAY

Icelandic carrier PLAY has scored a big improvement in July as load factor and passenger numbers increase as the new fledging airline continues to grow at a rapid pace.  The speed was further enhanced when a sixth aircraft, an  Airbus A320neo joined the fleet at the end of June and commenced operations during the first week of July. 

The airline carried 109,956 passengers during the month, which is 25% up from June when the budget carrier recorded 87,932 passengers. It is interesting to note that the number of passengers flown in July is more than the total number of all passengers carried in 2021.

In July, the load factor was 87.9% compared to a 79.2% load factor in June and 69.6% in May. This positive development is primarily due to the addition of the transatlantic hub and spoke model connecting cities in Europe and the United States.

 In the spring and summer PLAY has successfully launched many new destinations and seen very positive development of the existing destinations on the European side of the network.

July was the first month of full operations for PLAY following the ramp-up to the spring, with six aircraft operating to 25 destinations on both sides of the Atlantic.

On-time performance (OTP) in July was 79%, which is very satisfactory given the number of brand-new destinations and the difficult situation at many airports that still struggle with staff shortages causing delays for many airlines.

Six aircraft in operation

PLAY’s sixth aircraft, an Airbus A320neo, arrived in Iceland at the end of June and began flying passengers in July. PLAY is now operating three Airbus A321neo and three Airbus A320neo aircraft, in line with the company’s business plan and fleet strategy. 

PLAY will take delivery of four new A320/321neo aircraft next winter, bringing the fleet to a total of 10 aircraft in service from spring 2023. 

“It’s been great seeing so many new destinations and the full transatlantic network come into play over the past few weeks and the positive effect it has had on the utilization across our network. Our team achieved a very impressive on-time performance in the month despite a very challenging situation at many airports, a true achievement. We continue to see our unit cost (ex-fuel CASK) being below our targeted 4$ cents, fuel prices are decreasing, unit revenue (RASK) is rising, and our future booking flow is strong. It has been truly inspiring for me to take part in and witness the great team spirit and the professionality of all my colleagues across all functions at PLAY and how all their hard work and dedication are driving the success of our airline. These are all factors that fill me with enthusiasm and anticipation for the coming months and the long-term future of PLAY.”

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As of August 3, 2022 a new volcanic eruption began in the Fagradalsfjall volcanic system in the Reykjanes peninsula. The area is closely monitored by authorities, caution is advised and we highly recommend eager observers keep a close eye on www.safetravel.is for detailed information. The eruption is very visible in daylight and can be seen on a live stream from the area. The eruption is small, poses no threats to infrastructure or inhabitants in the area, Keflavik International Airport is open and incoming flights are getting a truly spectacular view!

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Icelandic carrier Play scores load factor of nearly 80% in June

The Icelandic carrier PLAY has reported a load factor of  79.2%  for the month of June, transporting nearly 88,000 people, up 55% from May this year.    

The load factor in June has been seen as significant when considering the carrier is still building up its route network from Iceland and new routes to New York, Palma, Bologna and Madrid were commenced.  The airline's on-time performance for the month was just 79.1%, however, this reflects reasonably well considering the mass disruption seen at many European airports over the month. 

Just like most other airlines, PLAY has experienced delays in its schedule and suffered from costs associated with these delays. This cost is already built into the company’s business plan and is in line with expectations and the norm in the industry.

During this year’s first quarter, PLAY began implementing the company’s fuel hedging policy. PLAY´s first step was a cautious one, with the next step now underway as PLAY has decided to further increase its fuel hedging. With this increase, PLAY is hedging 30% of estimated fuel consumption for the next three months, i.e., July to September, and 15% of estimated fuel consumption for the subsequent four to six months, i.e., October to December, over the next four to six months.

PLAY’s sixth aircraft, an Airbus A320neo, arrived in Iceland at the end of June and recently began flying passengers within the network. PLAY is now operating three Airbus A321neo and three Airbus A320neo aircraft. These aircraft are now flying passengers to PLAY’s 25 destinations in the U.S. and Europe.

Birgir Jónsson, PLAY’s CEO said:  “June is another landmark month for us as it is the first month when we operate our full hub-and-spoke network using six aircraft."

PLAY saw a 54% increase in passengers in May....

PLAY carried 56,601 passengers in May, a 54% increase from the previous month when PLAY carried 36,669 passengers and almost the same number of passengers PLAY flew in January, February and March (Q1) combined. In May, the load factor was approximately 70%.

On-time performance in May was 88.9%, which is a great achievement at the same time as PLAY recently changed its network to a hub-and-spoke network connecting passengers between Europe and the United States. PLAY’s load factor and passenger numbers are growing in the coming months and booking inflow for the summer is strong. This positive development is primarily due to the addition of the VIA market to PLAY’s network, as PLAY has started connecting cities in Europe and the United States.

12 New Destinations in May and June

In May, eight new destinations in Europe and North America were added to PLAY’s network; Prague, Boston, Lisbon, Gothenburg, Brussels, Stavanger, Malaga and Trondheim. In June, PLAY will launch services to Palma de Mallorca, Bologna, New York, and Madrid.

The total number of seats on sale in Q2 2022 will be 164% more than the company offered in Q1 2022. This expanded network will result in improved utilization of aircraft and other resources.

With the addition of New York to PLAY’s network (the inaugural flight on June 9), PLAY will have completed the launch of its transatlantic hub-and-spoke network for this year. PLAY will thus be serving 25 destinations. More destinations on both sides of the Atlantic will be added next year.

First Steps Taken in Implementing the Fuel Hedge Policy

PLAY has implemented its fuel hedging policy and has hedged 20% of estimated consumption in June, July and August at a price of USD 1,210 per metric ton and 10% of estimated consumption in September, October and November at a price of USD 1,112 per metric ton. A physical fuel hedging agreement has been made with Skeljungur, which is in line with the hedging policy. A first conservative step has been taken in implementing the policy, and the volatile economic and political situation globally will be monitored closely before further steps are taken.

 Birgir Jónsson, CEO of Play said: 

Strong booking flow, increased revenue, and lower cost, Play playing well.

Strong booking flow, increased revenue, and lower cost
Booking flow is strong and load factor growing

PLAY has carried approx. 230 thousand passengers to date with approx. 60 thousand passengers in the first quarter of 2022

The financial position of the company is strong. Cash and cash equivalents on the 31st of March amounted to USD 42.12 million. The equity ratio was 22% and the company has no external interest-bearing debt

EBIT was negative in the first quarter of 2022 in the amount of USD 13.3 million, as expected as the company has yet to reach economies of scale. The Omicron variant impacted revenue during the quarter and the war in Ukraine resulted in higher fuel prices towards the end of the quarter, impacting financial results negatively

PLAY has started the process of implementing fuel hedges

Cost of Available Seat Kilometer (CASK) excl. fuel is rapidly decreasing with the increased operation, and PLAY continues to work its way toward operational profit

Revenue (RASK) is increasing rapidly

During Q1, the main focus was on preparing for the airlines‘ operational ramp-up before the summer schedule and the hub-and-spoke operation, including hiring and training new employees, preparing 15 new destination airports, and adding to the fleet.

In January, PLAY carried 13,488 passengers with a load factor of 55.7%. In February the load factor was 67.1% and PLAY carried 19,686 passengers. The load factor was 66.9% in March and PLAY carried 23,667 passengers, which is a 20% increase from the previous month. A surge in COVID-19 cases at the end of 2021 caused hesitation amongst passengers to book their travel and had a negative impact on booking inflow for Q1.

Forward bookings continue to strengthen

Booking inflow started to improve in January, with 95% more sold seats compared to December 2021. In February, this positive trend continued with 59% more sold seats compared to January, despite the war in Ukraine. This improvement in booking inflow has continued into the second quarter of 2022, with 336% more sold seats in April compared to January, also reflecting more capacity. In April the load factor was 72.4% and we saw over 50% increase in passengers from the previous month.

Strong cash position and lower CASK

As expected, EBIT was negative in the amount of USD 13.3 million in the first quarter of 2022, as the company has yet to reach economies of scale. The Omicron variant impacted revenue during the quarter and the war in Ukraine resulted in higher fuel price towards the end of the quarter, both impacting the company’s financial results negatively.

PLAY continues to hold a strong financial position with cash and cash equivalents on the 31st of March amounted to USD 42.12 million. The equity ratio was 22% and the company has no external interest bearing debt.

PLAY has been successful in keeping costs down and CASK has been decreasing with increased operations. PLAY anticipates positive operating results in the latter half of this year with CASK excl. fuel steadily decreasing. PLAY foresees to reach its goal of CASK excl. fuel under 4 cents in summer 2022.

Loss amounted to USD 11.2 million for the first three months of 2022 compared to 0.4 USD million for the same period last year, before PLAY started flight operations.

Steps taken towards implementing PLAY‘s fuel hedging policy

PLAY has started the process of implementing its fuel hedging policy. A fuel hedging agreement has been made with Skeljungur which is in line with the hedging policy. A first conservative step has been taken in implementing the policy, and the volatile economic and world situation will be continued to be monitored closely for further steps to be taken. However, the fuel surcharge put in place in March manages to mitigate a notable portion of the fuel price increase.

Changing our fleet mix due to higher fuel prices

In the summer 2022, PLAY was planning to have three Airbus A321neo, one Airbus A321neo Long Range (LR) and two Airbus A320neo. Due to the high price of fuel, PLAY has decided to change its fleet plan for summer 2022, and instead of leasing an Airbus A321neo LR, PLAY will lease an Airbus A320neo at more favorable terms, thus securing an even lower cost base in the long term. As a result, the planned three times weekly Orlando service that was supposed to start on 30 September 2022 will not commence. Following this change, PLAY’s fleet in summer 2022 will consist of three Airbus A321neo and three Airbus A320neo.

Expanded network ensures increased utilization of aircraft and other resources

In the second quarter of 2022, PLAY will expand its network as new destinations in Europe and North America are added. In April, PLAY launched service to Baltimore/Washington D.C. and Dublin. So far in May, PLAY has launched services to Prague, Boston, Lisbon, Gothenburg, and Brussels. From now until the end of May, PLAY will launch services to Stavanger, Malaga, and Trondheim. In June, PLAY will launch services to Palma de Mallorca, Bologna, and New York.

The total number of seats on sale in the second quarter of 2022 will be 167% more than the company offered in the first quarter of 2022. This expanded network will result in improved utilization of aircraft and other resources. As a result, PLAY’s unit cost (CASK), excluding fuel and costs related to emissions units, is expected to be considerably reduced in the second quarter of 2022 compared to the previous year.

“As we close the first quarter of 2022, we see and feel a growing demand in the market and a great response to our new destinations. PLAY has clearly gained momentum, market share, and strength very quickly. After a challenging winter, it is good to see this positive feeling materialize in an increased load factor and a growing number of passengers month after month. This quarter, we took steps towards expanding our fleet, staff number, network, and we are confident that we are increasing our capacity at the right time as market demand has clearly recovered. PLAY will start operations to twelve new destinations in Europe and the U.S in May and June. This means that in summer 2022, PLAY will serve 26 destinations on both sides of the Atlantic, so it is safe to say that we have some very exciting times ahead. PLAY is heading into the spring and summer with a strong booking and financial position. We expect that utilization will continue to improve in the coming months with the addition of the VIA market to PLAY’s network as we have started connecting cities in Europe and the United States. The team at PLAY has worked tirelessly towards the goal of launching the transatlantic operation as well as our many new European destinations, and it has been great to watch all the pieces come together thanks to their precision, professionalism, and skills,“ says Birgir Jónsson, CEO.

 CONDENSED INTERIM FINANCIAL STATEMENTS  1 January - 31 March 2022

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PLAY reports a 72% Load Factor in April and over 50% increase in passengers

PLAY reports a 72% Load Factor in April and over 50% increase in passengers

 

The new Icelandic airline PLAY carried 36,669 passengers in April, which is a 55% increase from the previous month when passengers were 23,677. The load factor in April was 72.4% compared to 66.9% in March. The load has grown significantly even though operations to our first U.S. destinations started late in the month. This shows an increase across all our networks over the whole month of April. On-time performance was 90.1 %, demonstrating the professionalism of our operational teams in a challenging ramp-up phase into a hub-and-spoke model. PLAY is heading into a strong spring and summer as strong booking trends continue. PLAY has been seeing its strongest bookings in recent weeks, which strengthens the company’s revenue base. PLAY expects that utilization will continue to improve in the coming months with the addition of the VIA market to PLAY’s network as we have started connecting cities in Europe and the United States.

PLAY’s inaugural flight to the U.S.

April was an important month for PLAY as U.S. operations launched. On April 20, PLAY had its inaugural flight to Baltimore/Washington DC and therefore started the next chapter of the company’s history where passengers from North America and Europe are transported over the Atlantic Ocean with Iceland as a hub. The launch of the transatlantic operation was a great success and is a major achievement with one of PLAY’s long-term goals being reached.  Since April 20, PLAY has operated flights daily to and from Baltimore/Washington DC. PLAY also began services to and from Dublin airport in April.

8 New Destinations in May

In May, PLAY will start operations to 8 new destinations; Lisbon in Portugal, Stavanger and Trondheim in Norway, Malaga in Spain, Prague in the Check Republic, Gothenburg in Sweden, Boston in the U.S and Brussels in Belgium. This means that PLAY will serve 25 destinations on both sides of the Atlantic in 2022.

 

“Over the last few months, we have felt a growing demand in the market and a great response to our new destinations. After a challenging winter, it is good to see this positive feeling materialize in an increased load factor and growing passenger numbers in April. We fully expect this trend to continue as future bookings are strong and healthy, particularly with the addition of the transatlantic traffic which strengthens the utilization of our key European city destinations. The team at PLAY has been working tirelessly towards the goal of launching the transatlantic operation as well as our many new European destinations and it has been great to watch all the pieces come together due to their precision, professionalism, and skills,” says Birgir Jónsson, PLAY’s CEO.

 

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PLAY issues its 2021 report.....

In June 2021 the new Icelandic airline PLAY launched commercial flight operations and from the very start, the carrier started to build up a strong customer base.  The company is focused on building its corporate culture, organizational structure as well technological infrastructure. 

According to its latest report, the company is right on track to realize its objective of building a profitable company operating a hub-and-spoke network between Europe and North America.  During its first six months of flying, it carried more than 100,000 passengers on more than 1,000 flights. 

Considering the challenging market environment and the performance of other start-up airlines in Europe and North America, the boss of the budget carrier, Birgir Jónsson believes 2021 was very successful for the airline and a clear sign that it is on the right path.  'Our achievement is due to our team, and we are incredibly proud of every single member. What guides us toward continued success is our very strong foundation, our digital infrastructure, and an exceptional team of people. We believe in safety, simplicity, sustainability, and of course playfulness."

 

The long-term goal is to make PLAY a strong and 

leading brand in the markets we serve, and in our 

opinion, 2021 was a solid step in that direction.

PLAY is an Airbus A320neo Family operator. The A320 Family is the newest generation of narrowbody aircraft with lower fuel consumption and a smaller environmental and noise footprint than older generation aircraft. The A320 Family has size and range flexibility, allowing PLAY to reach small and larger markets close by and far away, so it perfectly fits PLAY’s network.

In December, PLAY opened a new office in Vilnius, Lithuania. Whilst the airline's headquarters and the current flight operations remain in Iceland, including all flight crew and cabin crew. The Vilnius office hosts various support and technical functions and will have up to 20 employees by the end of 2022. The new office location will expand access to a larger talent pool of specialists in digital development, marketing, finance and customer service. The Vilnius office also allows PLAY to develop a more international company culture and create relationships with new suppliers, service providers and in future the office will handle all reservations and customer service operations for the airline, where costs and wages are a fraction of what it costs in Iceland.  

PLAY’s fleet consists of the Airbus A320neo family aircraft, which includes the A319, A320 and A321. All these types are narrowbody aircraft.

 

The A320neo family, are one of the most successful aircraft ever produced, with passenger seating ranging from 140 to 244 seats and a flight range of up to 7,400 km. Operating a single family of aircraft provides multiple operational and cost advantages: 

• All aircraft in the A320neo family are very similar.  PLAY’s flight and cabin crew only need to learn to operate one to be able to operate them all. A fleet that provides crew commonality enables us to stick to our core value of simplicity.

• Lower maintenance cost due to the similarities within the family and because all aircraft are equipped with the same engine type.

• The new engines in the Airbus A320neo family have nearly 50% less noise footprint. Fuel-Efficient Fleet – the Airbus A320neo family has the newest engine technology. That means fuel consumption per block hour is 15-25% lower than older generation aircraft. The low-cost business model with high seat density, high seat factor, and investment in the latest aircraft technology will help to minimize our the operation's environmental impact, and enables a low emission rate measured in carbon emissions per passenger-km

Read the full report......

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$22.5 million net loss last year, yet Icelandic budget airline PLAY anticipates operating profit in the second half of this year

Despite the challenging business environment, the budget Icelandic up-start airline PLAY anticipates the latter half of 2022 to give it an operating profit. 

As the carrier's transatlantic hub-and-spoke route network becomes fully operational PLAY believes it can turn around from a net loss of $22.5 million last you to a positive result this year. 

The financial results for 2021 were in line with the fact that PLAY is still in its build-up phase and as such was not expected to be profitable in the first year of operation, having only begun operations in June. The impact of COVID-19 also slowed the growth trajectory and lowered revenues and load factor for the year. This trend has now been reversed, utilization is growing and the outlook is positive for this year as the markets release the significant pent-up demand for travel built up over the last two years of travel restrictions.   

As the negative impact of the COVID-19 pandemic recedes the effects of the Russian invasion of Ukraine are a new challenge and the impact on PLAY has so far been limited to the increase of the price of oil. PLAY estimates that based on the current market situation, this war-related price increase will raise its costs by around 10 million USD this year. This cost will be met with an even stronger emphasis on lowering operating costs as well as the introduction of a fuel surcharge, similar to what many of PLAY‘s competitors already have in place. 

Currently, PLAY does not have any plans to raise additional funds as its cash position is solid, the company has no interest-bearing debt and the booking flow is strong and growing.

PLAY was in the process of implementing an oil price hedging strategy when the invasion took place causing the price of oil to increase and then fluctuate significantly. As future market developments are very unclear, and markets are reacting to possibly short-term but extreme external factors PLAY will not implement its hedging strategy until the visibility in the market increases. PLAY will however strengthen its efforts to reduce costs across its operation to ensure that the impact of fluctuating oil prices on cash flow and margins will be kept at a minimum.

The last quarter was an eventful one for PLAY. Ticket sales for U.S. flights were launched in December which was a significant milestone and opened a new chapter in PLAY’s expansion. PLAY had approx. 150 employees at year-end but estimates to grow to around 300 people in the summer of 2022, when PLAY will operate six aircraft in its transatlantic network connecting Europe to the USA via the PLAY home base in Iceland.

“2021 was a year of many great milestones and victories for PLAY. We began our flight operations, listed on the Nasdaq First North stock market, and enjoyed a very warm reception from passengers and investors alike, thereby showing the clear need for a new Icelandic low-cost airline. The year was of course impacted by wave after wave of COVID-19 but we were able to use our flexibility to minimize the negative impact as much as possible and are absolutely on track to realizing our vision of building PLAY into a profitable airline operating a hub-and-spoke transatlantic network. Our booking flow is strong, our new destinations have been very well received and I believe that we are expanding our network and operation at precisely the right time as the demand in the market increases. Our secret weapon is our super professional and ambitious team of people across all functions of the company, a team that is focused on working together to achieve its goals and having fun at the same time. We are entering a new and exciting chapter in the PLAY saga, and I look forward to working towards the future together with the amazing team of the people at PLAY,” says Birgir Jónsson, PLAY’s CEO.     

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